How to Get a Personal Loan

businessman holding money

Most personal loans are unsecured, meaning they do not require any collateral such as your house or your car. Whether you’re consolidating debt, taking care of emergency expenses, or even funding a vacation, a personal loan can be a great option that won’t wreak havoc on your bank account. If you’re unsure how to get a personal loan, consult this comprehensive guide from Xpress Cash, below!

Check Your Credit Score

The first step is to check your credit score. The better your credit score, the easier it will be for you to qualify for a personal loan, and the lower your interest rate will be. Here’s a breakdown of credit score ratings:

  • Excellent: 700 to 850
  • Good: 680 to 699
  • Average: 620 to 679
  • Low: 580 to 619
  • Poor: 500 to 579
  • Bad: 300 to 499

Under the Fair Credit Reporting Act, you’re entitled to one free copy of your credit report per year from the three main credit bureaus – Equifax, Experian, and TransUnion.

Find Out If You’re Pre-Qualified

It’s worth your time to find out if you’re pre-qualified for a loan online. Doing so will give you an idea of what sorts of offers you might receive from lenders. And, because many lenders do a soft credit check for the pre-qualification process that won’t affect your credit score, you can also use it as an opportunity to check your score without penalty.

Compare Your Options

Once you’ve pre-qualified for a few loans, you’ll want to compare the loan amounts, interest rates, and monthly payments you were quoted by each lender. If you’re not fully satisfied with the options you pre-qualified for online, you can further your search by consulting local banks and credit unions. Generally, credit unions offer the most competitive rates and flexible terms, and they’re the most reliable option for individuals with bad credit.

Apply to Your Top Choice, Get Approved

After settling on a loan with rates and terms you feel confident about, it’s time to submit your official application. Be prepared to provide a form of identification like a driver’s license or passport, proof of address, and an income verification letter or other documents that verify your annual income, such as a W-2, bank statement, or pay stub – and do not ever consider lying on your application. After you’ve provided this, the potential lender will do a hard credit check. Once approved and finalized with your signature, you should start receiving your funds within one week.

Learn More About Personal Loans at Xpress Cash!

Have lingering questions about how to get a personal loan? Want to compare personal loans vs. a line of credit or explore short term vs. long term loans? Contact Xpress Cash today! Our friendly finance experts in Michigan, Wisconsin, and Idaho are always happy to help. If you’re in need of immediate funds, we also offer simple solutions like cash advances, installment loans, and title loans.

After learning how to get a personal loan, you may want to explore whether you can repay your loan early if you’d like to do so in the future. Learn more about the topic with our team today!